Millennials, that is, people born between 1981 and 1996, are now the largest segment of the workforce. According to statistics, it is they who make up about 50% of the total workforce available now, and according to forecasts, by 2030 they will generally dominate with a record 75% of the total. However, this does not mean at all that this generation can be considered the richest, since often its representatives make absolutely stupid money mistakes that do not allow them to create the necessary savings.
Budget Failure
Often people simply can’t spend money in adequate amounts and significantly exceed their limit. In this case, drawing up a suitable budget comes to the rescue. Unfortunately, it is not enough to compose it - you must also learn to carefully stick to it. Remember that you should make such notes only on the basis of the funds actually available to you, that is, cash.
Expense planning
So as soon as you receive a salary, carefully analyze all your income and create a sufficient reserve fund in which you will save all surplus funds. Believe me, in the event of an unforeseen situation, such a reserve will be a real salvation, since it will allow you to stay afloat for at least some time before you find a new source of income or the problem ceases to exist.
But in fact, you should understand that planning your expenses is necessary, and if you are not doing it, then you are clearly lazy or expect a “good time” in order to start collecting savings. Understand: this time will never come, and laziness will not lead to anything good. So sit down at the table and make your budget, trying to plan it for at least six months.
Credit Card Attraction
Recently, credit cards are becoming increasingly popular, with some people having several of these pieces of plastic at once. However, you must be aware that in essence they are a double-edged blade. So, you cannot fully be aware of exactly how much finance you actually have. Often you begin to make unnecessary expenses, stipulating that you pay off these funds from your salary. So, if you have such credit cards, it is best to simply pay off all debts and refuse them. Well, if it is impossible to do this, then use it only for very important needs that are prescribed in your budget, and not for the next dress.
If you stop making such unnecessary debts, then you can noticeably come closer to achieving your financial goal, because you will live according to the budget, and not spend money that does not yet belong to you.
Buying expensive housing
If you attend any seminar on financial literacy, then you will be surely asked about the primary goal. The most popular answer among students, and among young workers, is to buy their own home. Creating a cash reserve fund? It's boring. Resolving any credit card debt? But this can be postponed to a later date. This is exactly what people who cannot build a normal financial hierarchy in their minds usually think.
However, in this situation, buying your dream home is not particularly reasonable. You do not care during the course of life when accumulating money you will need to spend money on unforeseen expenses or pay off your debts.However, if, together with all this, you also need to repay a very large mortgage loan over the course of a dozen years, then you may simply not be able to sustain this pace. And if you still need a home, then do not buy a luxury apartment, but get along with an inexpensive option. Gradually it can be improved.